Collins said that while core inflation pressures remain elevated, she is increasingly confident inflation is moving back to the Fed's 2% target.

Federal Reserve Bank of Boston President Susan Collins said policymakers should use a careful, data-dependent approach as they lower interest rates to help preserve the strength of the US economy.

The labor market remains in a good place overall—neither too hot nor too cold,” said the Boston Fed president.

Boston Fed president Susan Collins said the central bank will likely need to cut interest rates further, the latest in a chorus of Fed policymakers to publicly support more monetary policy easing after the first cut in more than four years.